MP arrested over award of Sh122m tender

Rongo Constituency Member of Parliament Paul Odalo Abuor Mark was yesterday arrested for awarding a Sh122 million tender to companies associated with him.

The Ethics and Anti-Corruption Commission (EACC) said they conducted a successful investigative operation targeting the MP, who is under investigation for alleged conflict of interest and theft of public funds.

The anti-graft body had been investigating the award of tenders worth Sh122 million by the Rongo National Government Constituency Development Fund (NG-CDF) to companies associated with the legislator during the Financial Year (FY) 2017/2018 to 2024/2025.

Preliminary investigations established that Abuor, together with one Christopher Nelson Abuor registered a private company by the name Aztec Infrastructure Kenya Ltd, where they are listed as directors.

“Using this company, the suspect trades with Rongo Constituency NG-CDF through construction of classrooms and drilling of boreholes and has so far received Sh122 million. He is the sole signatory to the Company Bank Account,” the EACC said.

EACC CEO Abdi Mohamud added that the MP has, through his Personal Assistant, registered another company by the name Jebset Holdings Limited.

“Through this company, the Personal Assistant has been paid Sh19.6 million by Rongo Constituency NG-CDF. The Personal Assistant is the sole Director and signatory to the Company Bank Account,” he added.

Mohamud also said the Rongo Constituency matter was part of broader investigations by the Commission into numerous reports of embezzlement of public funds under the NG-CDF, National Government Affirmative Action Fund (NGAAF) and other devolved funds.

Ironically, the arrest comes just days after the same MP sponsored a Bill proposing that state officers who divert funds meant for projects face harsh punishment including dismissal and jail terms.

The Public Finance Management (PFM) Act, 2025 compels state agencies to open a project-specific bank account where funds meant for every project would be wired.

“All funds disbursed by the National Treasury to ministries and state departments, SAGAs and parastatals for approved projects in the annual budget shall be deposited in the designated project-specific bank accounts,” the Bill states.

The Bill further states that these accounts shall be opened and maintained solely for the management and execution of the approved project to which the funds are allocated.

Massive penalty

The Bill provides that any accounting officers or AIE (Authority to Incur Expenditure) found to have diverted funds from the project-specific bank accounts to unauthorised uses shall face a penalty equivalent to 150 per cent of the amount misused.

“All funds from the Treasury will now be directed to accounts dedicated solely to the implementation of specific projects. This ensures that the funds are not misdirected or misused,” Abuor said.

The fine is recoverable as debt owed to the government. Besides, the officer shall also face immediate suspension and potential dismissal from public service, subject to investigation.

“The officer shall be liable to a term of imprisonment not exceeding five years upon conviction,” Abuor told journalists at a press conference in Parliament Buildings this week.

“Any bank found to have facilitated the unauthorised withdrawal or transfer of funds from project-specific accounts shall be subject to financial penalties and other legal actions as determined by CBK,” he stated.

Abuor, in his proposal, amends section 19 of the principal Act to compel the Controller of the Budget to monitor the expenditures.

“The CoB shall ensure that the funds are disbursed to project-specific accounts and shall provide quarterly reports on compliance by ministries, state departments, SAGAs and parastatals,” Abuor said in the Bill.

The Bill mandates the National Treasury to develop and maintain a digital platform for tracking the utilisation of project-specific accounts, accessible by oversight bodies and the public.